Hi All,
How does a default looks on a credit file?
I have abtained my latest credit file and I have entries like that:
“WESTPAC CARD SERVICES* made an enquiry on 11-5-2005 in reference to an application for a Continuing Credit account where you applied as the Principal for an unspecified amount.”I haven’t applied for any new loans with them, what this could mean? I am behind in payments?
Is it why I am getting rejected with another lander for a IP loan??
[stunned]
Sounds like a Credit Card to me.
That is probably not the single reason you are being rejected. Did you ask the lender or broker for a reason?
If you had a default on there it will be more obvious than that. You would also have been informed by the organisation lodging the default.
If that is all that is on your CRA then don’t be too concerned.
I suggest you speak to a broker who may be able to ask a few questions and pinpoint the reason you are not getting anywhere.
All the best
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It means that you applied for a credit card on May this year and they did a credit history check on you.
The reason you may be getting rejected for a loan may be due to serviceability issues (ie: your ability to repay the level of debt you seek may not be sufficient) or that you have not disclosed a credit card on your application form but they see it on your credit history.
If you did not apply for a credit card with Westpac, you can have this removed by contacting their card services division.
Maybe, there is something else on your file further back that the lender might not like.
As Simon suggested, you should probably sit down with a mortgage adviser / broker and sort it out but stop applying for credit in the mean time or things will just get worse with every new enquiry that does not result in a loan or credit card being approved.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Linksthank you for replies.
I have another 5 or so entries like that. I did not apply for those loans. Could someone simply trying to stuff up my credit rating?
I am going to write to Baycorp about this. What’s the procedure and timeframes of removing this bull* from my file?
What do the bank look at when they assist my application any way? What if did apply for the loans, got them and repayed?? Credit file doesn’t say that they were declined.
Please help!Entries like that aren’t all that bad. You need to find out why the bank knocked you back and address that issue.
Lenders cannot access your CRA unless you gave them written authority to do so – that authorityu is in the application forms. So if they have done it without your knowledge you need to speak to them.
But first thing is to get the reason for the knock back and go from there.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The credit file does not have to say whether you were declined or not. When you apply for further finance, there is an assets and liabilities section. If you do not state any liabilities but you have 6 enquiries on your credit history, they know you were declined or that you are a compulsive applicant for finance. Either way, they will not like that.
If they were not declined and you just did not put them on the new application, they will not like this even more.
A person’s credit history tells a very good story. It shows a lot including your residential history.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksWestpac have previously rejected due soley to the number of enquiries on my CRAA. Once I explained them to Westpac all was Okay.
Maybe you have a common name and there has been a mix up on your file-another person with a similar name?
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry is right about that. Same thing happened to me with ANZ but an explanation saw things turn out fine. Most lenders have a ridiculous scoring system that looks at numbers of enquiries.
I have clients with more than 50 enquiries in 5 years and they continue to be successful obtaining additional finance.
With mortgage insured products these days, you tend to get two hits for every one application as the lender and the mortgage insurer runs their own credit checks.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI had a couple of those and solesly for Credit Cards only. Seeing I’m onmy IP acquisition phase, I’m trying very hard to not be tempted by these new c/cards companies offering zero/low interest for 6month transfers..etc… I’ve got enough IP queries on my file as it is and try not to sign the bank’s finance applications unless I’m pretty sure I’m going to get the loan. I hope WBC is not putting those queries up simply cos you’re late in paying. Maybe theres actually no way they can record that in your file and simply entering that query so that others can see it. Pretty sly way of trying to let other lenders know you’re not on time with the c/card payments. Let us know how you go.
It is actually not sly. Many contracts have clauses in them allowing further credit checks if credit goes into arrears. I think people should just pay their bills on time and there would be no ‘slyness’.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
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